Why TWM?

1. Why TWM? Thompson wealth management Investment counsel

2. Our firm and mission • TWM was founded in 1991, with a mission to bring steady, endowment style investment results to individual clients in the context of comprehensive and objective planning relationships. • Our practice distinguishes itself by combining the best that Wall Street firms and fee-only financial planning groups have to offer, without the disadvantages of each. • TWM has gained a reputation for providing careful and yet innovative stewardship of our client’s financial affairs.

3. Our highest priority is to help clients find financial independence, and the time and peace of mind to enjoy it. • Uncompromising fiduciary standards, open architecture and transparent business model contribute to clients’ peace of mind. • Fee-only relationships foster unbiased, long-sighted advice. • Broad financial planning to simplify our clients’ lives, protect their resources, and help them stay on track to realize their goals.

4. Clients can count on their assets to be managed effectively with risk exposure aligned to their unique objectives and risk capacity. • Clients appreciate that we take the time to educate them about investments and financial concepts. • We help clients develop the mindset of a successful investor -- • We provide a sound, intelligent framework for investment decision-making and the ability to keep emotions from corroding that framework.

5. Clients feel better knowing they have a sound plan to accomplish their goals, ongoing support for reaching them, and that if something unexpected happens, they have somewhere to turn. We don’t market our services or seek the limelight. Instead we give our undivided attention to a manageable and thriving group of clients who recognize the important role that professional guidance and a comprehensive wealth management strategy plays in the pursuit of financial stability and independence.

6. What makes twm different? • We offer a level of expertise and access rarely available to individuals except in the ultra high net worth market. • On several occasions Bruce Thompson’s one, three and five year results for Balanced/Tactical Asset Allocation accounts have been ranked in the top twenty among Nelson’s Worlds Best Money Managers, as published by Thomson Reuters. • TWM has been recognized as a “Five Star Adviser” in Boston Magazine’s Best of Boston Survey for 2010, a welcome honor in the wake of the financial crisis.

7. Direct speaking access • We are committed to providing clients with direct speaking access to their professional money manager (Bruce Thompson). • When is the last time you spoke with the person actually managing your investments? • Speaking access to a professional manager is extremely rare today when most individuals receive financial services through planners, brokers or consultants who do not manage money, but farm it out to mutual funds and other managed accounts. • Experience dictates that direct speaking access to an objective veteran with a steady hand and wisdom of the years makes all the difference at critical moments.

8. Long Term Client relationships • We are proud of the long-term nature of our client relationships. • TWM enjoys minimal client turnover, a testament to our insistence that clients come first. • Through all of the ups and downs of the last two decades, it is gratifying that we continue to serve our founding clients.

9. TWM does not impose a minimum amount of assets for doing business with a client. Its not all about business for us. • As an established & independent advisor we are fortunate to have the flexibility to serve clients with a wide range of backgrounds. • We count many senior corporate executives and entrepreneurs among our clients, but we also enjoy working with educators, creative artists and younger families interested in building toward financial independence.

10. New clients generally come to us on referral from satisfied clients and members of our advisory network who respect our work. • Our first responsibility is always to our existing clients. • The key for us is “chemistry” -- • Nothing is more important to you’re the success of an advisory relationship than the right fit – agreement on investment philosophy, open and businesslike communication, and a shared “trust but verify” attitude.

11. . • TWM opened its doors as an independent, fee-only advisor in 1991, when that was a very revolutionary idea! • Today “fee-only” is very common. • The question is, do you want to work with a leader or a follower?

12. “THE INTELLIGENT PATH TO EXCELLENT INVESTMENT RESULTS” • “By selectingfiduciary advisors with entrepreneurial orientationinvestors’chances for success are improved. • Large, product-driven financial companies and their advisors face daunting obstacles to objective and creativedecision-making. • Small independent firms with excellent people focused on a well defined market segment provide the highest likelihood of identifying the intelligent path to excellent investment results.” • --David Swenson, CIO, Yale Endowment

13. Thinking Outside the box: Flexible fee arrangements • While many advisors today have accepted the fee-only business imperative TWM again has innovated by offering a fee arrangement that provides more objectivity than charging fees based on assets under management. • This truly aligns the interests of client and advisor relative to more complex, comprehensive planning relationships. It is also desirable for clients who want us to take off their hands as much of the burden of personal financial management as we can. • We call this service “Personal CFO”.

14. Personal cfo: Client + Financial Independence Thompson Wealth Management, Ltd.

15. Charging fees based on assets under management, while much better than commission based fees, does not incentivize objective advice related to financial decisions that might reduce assets under management: • Whether to take on or pay off mortgage debt • Buying a vacation home or investment property • Decisions regarding retirement plan rollovers and annuities • Diversification of concentrated stock positions and stock options • Allocation of funds to private investments/venture capital and outside money managers • Gifting programs and charitable bequests • Purchase of cash value insurance policies and annuities

16. A sound framework for investment decisions By helping clients develop a sound intellectual framework for making investment and planning decisions, and the ability to keep emotions from corroding that framework, we have earned a reputation for excellence.

17. CORE PHILOSOPHY: MARGIN OF SAFETY • TWM’s core financial planning and investment philosophy can be distilled into the motto: • MARGIN OF SAFETY • Don’t Predict – Prepare • Scenario analysis – always ask “What if things don’t work out as planned?” • Businesslike approach to investment selection

18. CORE PHILOSOPHY: MARGIN OF SAFETY • Control the Controllable: • FOCUS ON PRICING NOT TIMING • Control trading costs and taxes • Low cost, institutional class funds • Our own behavior

19. CORE PHILOSOPHY: MARGIN OF SAFETY • TWO STRATGIC DECISIONS: • 1) Asset Allocation – • focus on aligning risk exposure with risk capacity. • Capture the risk exposure that makes the most difference. • Three factor model: size, value, liquidity premium • For reasons of human nature, the most profitable portfolio is the one that investor can hold for the long run.

20. CORE PHILOSOPHY: MARGIN OF SAFETY • It may be comforting when advisors appear to have a crystal ball (and many act as if they do), but such pretension can lead to bad decisions. • In the internet age, information is plentiful and cheap, but wisdom is rare and valuable. Wisdom keeps you above the noise. It helps you to be intellectually honest about what we can and cannot know. • We focus our efforts on scenario analysis that encompasses both good and bad outcomes for investment and planning strategies. This helps us assess the magnitude of risks and opportunities presented by investments we are considering.

21. CORE PHILOSOPHY: MARGIN OF SAFETY • 2) How should we respond to market fluctuations for either defensive or offensive reasons? • Pricing not Timing • The strategies must be written down in an investment policy statement, for reasons of human nature.

22. Expected Returns Per Starting PE Ratio: 1881 to 2009 Current PE as of 9.10.09 = 18.76 Pricing not Timing

23. Could you be a more successful investor? If you’ve failed at investing so far, it probably isn’t because you’re not smart. it may be because you haven’t developed the procedural and emotional disciplines that successful investing requires. (see the story of Sir Isaac Newton below)

24. Our Cost – on the Right Side of the Decimal Point Because of TWM’s focus on individual investments held for the long term, or on tax efficient mutual funds with very low expense ratios and low turnover, the cost of hiring TWM is likely to show up to the right of the decimal point on your total return compared to most portfolios that we see.

25. Our value – on the left Side of the Decimal Point • TWM’s three factor asset allocation model focuses on capturing the risks that make a difference in providing a premium return. That shows up on the left side of the decimal point. • Most investors never realize anywhere near the long-term returns advertised by mutual funds, let alone passively managed indexes. That’s because they’re focused on things that actually detract from returns IN A BIG WAY: • Timing the market • Investing in and paying high prices for popular growth stocks • Picking hot sectors and expensive active fund managers based on past performance • Investing in funds with style drift that make impossible to manage risk exposure effectively.

26. Our value – on the left Side of the Decimal Point • TWM helps align Risk Capacity with Risk Exposure. • THE BEST RETURNING PORTFOLIO FOR YOU IS THE ONE YOU CAN HOLD THROUGH THE UPS AND DOWNS OF THE MARKET. • A SHARED INVESTMENT POLICY PROVIDES A SOUND AND DISCIPLINED INTELLECTUAL FRAMEWORK FOR MAKING INVESTMENT DECISIONS. • CONTINUOUS COMMUNCATION AND EDUCATION HELPS TO KEEP EMOTIONS FROM CORRODING THAT FRAMEWORK. • THIS ALL SHOWS UP ON THE LEFT SIDE OF THE DECIMAL POINT.

27. Biography: Bruce Thompson founded TWM in 1991 and is a thirty year veteran. Previously he served as Vice President of Investments at Smith Barney, and as Vice President at Dean Witter Reynolds. Prior to that he worked as Account Executive at EF Hutton and as a financial planner at IDS/American Express. Mr. Thompson graduated from Syracuse University’s Maxwell School of Public Affairs, and studied at London School of Economics. He attended the Selected Studies in Business program at Harvard University Extension School with concentration in Quantitative Portfolio Management. He is currently a candidate for the CIMA designation (Certified Investment Management Consultant) offered through IMCA in conjunction with The Wharton School. He is a member of the Investment Management Consultant’s Association and the Financial Planning Association. Mr. Thompson has been recognized as a “Five Star” Advisor in Boston Magazine’s “Best of Boston” survey. He has been ranked in the top twenty of the World’s Best Money Managers as published by Nelson’s and Thomson Reuters.

28. Common services: • Lifetime and Retirement Income Planning • Portfolio Management • Complete Financial Analysis • Diversification Strategies for Executive stock options, concentrated stock positions, 10b5-1 Plans. • College Planning • Tax Planning • Estate Planning and Trust Services • 401(k) Plans and Business Consulting Services • Angel investing-- early stage venture capital

29. LET’S TALK • We look forward to meeting you, learning about your needs, and working with you. For more information or to arrange an appointment, please contact: Bruce P. Thompson Thompson Wealth Management, Ltd. 9 Pond Lane, 1F Concord, MA 01742 978-287-5151 Bruce@twmltd.com